Retailers oppose online sales tax

A number of online retailers have signed a letter addressed to chancellor George Osborne calling for an end to the argument for an online sales tax.

Online retailers have hit out against calls from some physical stores for a new online tax to level the playing field.

The letter was signed by the chief executives of six online retailers, including Ocado, Shop Direct and Appliances Online.

“At a time when SMEs [small to medium sized businesses] in these sectors are attempting to deliver innovation, growth and jobs they should not be choked off by the unintended consequences of an unfair tax,” reads the letter, which argues that online firms already pay a number of taxes in the form of corporation, fuel duties and employment tax.

Next boss Simon Wolfson also added is comments, slamming the tax as an ‘extremely backwards step’.

“An online tax would kill entrepreneurial spirit by making it harder for smaller online retailers to get started,” said Wolfson.